07.10.202604:50:42UTC+00Sensex Retreats on RBI Rate Hike

India’s BSE Sensex declined about 0.6% to 72,635 on Wednesday, erasing gains from the previous session as investors turned cautious following the Reserve Bank of India’s latest policy decision. The central bank raised its key policy rate by 25 basis points to 5.5%, its first hike since February 2023, responding to inflation that has broadened beyond food and fuel, with higher oil prices further intensifying price pressures.

Brent crude hovered around $101.70 per barrel, as renewed tensions in the Middle East and a storm threatening US oil output heightened concerns over potential supply disruptions.

On the corporate front, Titan dropped about 3.4% after the jewellery retailer posted weaker-than-expected growth in its quarterly business update. Other notable decliners included BSE (-1.5%), HDFC Bank (-0.8%), Reliance Industries (-0.4%), and ICICI Bank (-0.8%).

In contrast, Asset Reconstruction Company gained roughly 6.8% after reporting a 54.2% year-on-year increase in consolidated net profit for the June quarter.